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Payday Loans – How and When to use Them

Payday loans are swiftly becoming quite popular across the country. The short-term cash lending industry has grown to twice its size over three years, indicating that there is quite a lot of demand for this useful service. It comes at a time where the majority of people need it most.

Whether you’ve faced the fact or not, you may be faced with the need for a large injection of cash, for something like a medical emergency or a similarly urgent situation. You may not be able to afford it yourself: this is where payday loans come into play. If you need fast cash, read on.

How does a payday loan work?

A payday loan is a loan that you get from a business that is not a bank. They are called payday loans because the loan is due back on your next payday. The lender first determines if you have a regular source of income and if you will be able to pay the loan off when you next get paid.

The lender will request proof that you have regular income, via something like a bank statement or your most recent payslip. Your credit history will also be examined, although it is most likely not going to affect your application, as your personal circumstances will be taken into account, given that you’ve gone to a responsible lender.

On your next payday you will repay the loan, plus any relevant charges.

During an emergency

Unless you’re thoroughly covered by insurance, you shouldn’t really expect free government healthcare to give you the best possible treatment available during an emergency(really?). Waiting lists are extending by the day, so you may have to wait for urgent treatment.

If you don’t have the money to skip the queue and get treated privately, a payday loan is an ideal solution. All you’d have to do is explain your delicate situation to the lender and prove that you’ll be able to pay the debt back in time.

Other emergencies

There are plenty of other situations where a swift payday loan can help. For instance, if your pipes have just burst at home, the flooding is going to cost you quite a lot of money unless you get the professionals in quick. But what if you don’t have the adequate funds to cover the plumbing costs?

It definitely doesn’t help that it’s not a situation you can really ‘save up’ to deal with. Your best bet would be to get a payday loan, get the plumbing bills out of the way, and then repay the loan on your payday.